Fake letters of credit (L/Cs) played a critical role in a massive series of serious financial crimes and money laundering operations executed by a resident of the US state of Connecticut.

As a result of investigations that unearthed these operations, Hanibal Tayeh has now pleaded guilty to two counts of bank fraud, four counts of wire fraud, three counts of money laundering and one count of making a false bankruptcy declaration.

Case outline

In 2013 and 2014, Tayeh used fake documents and misrepresentations to obtain a US$9.1 million loan package and later a US$400,000 extension of credit from a bank. Several of the fake documents and misrepresentations pertained to a business venture Tayeh claimed to be pursuing in Saudi Arabia.

Further, he financially defrauded an individual by making misrepresentations related to construction projects he claimed to be pursuing in Saudi Arabia. Tayeh then laundered the proceeds of his fraud schemes through payments made to third parties for his personal obligations.

L/C abuses

According to his plea agreement's statement of facts, Tayeh admits to using a fake US$30 million L/C from a reputable Saudi Arabianfinancial institution to obtain loans.

Additionally, Tayeh made a false statement during a bankruptcy proceeding when he denied knowledge of a fake L/C that he created.

Long running case

Tayeh was originally charged and arrested for his crimes in July 2018 but has managed to avoid successful prosecution until now.

He holds a doctorate in environmental engineering and previously served as president of Spectrum Analytical, a company specialising in the testing of a diverse range of materials, including sediments, groundwater, animal tissue, and hazardous waste.

Bank Rhode Island took control of Spectrum Analytical after uncovering allegedly fraudulent documents.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.